BMW profit falls by 75% in Q1

Profit of the German automaker Bayerische Motoren Werke (BMW) declined in the first quarter by 75% in annual terms due to large-scale losses associated with the investigation in the EU.

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Net profit in January-March fell to €561 million compared to €2.26 billion in January-March 2018. In terms of ordinary and preferred shares, profits fell to €0.85 from €3.44 a year earlier.

Profit before tax and interest payments decreased by 78% to €589 million against €2.71 billion in the first quarter of 2018. Revenues decreased by 0.9% to €22.46 billion against €22.67 billion a year earlier.

The balance sheet shows losses of €1.4 billion. The company has reserved this money in connection with investigation into the case of possible participation in a conspiracy to limit the development and introduction of technologies to reduce emissions of harmful substances. The German automakers BMW, Daimler and Volkswagen are in the spotlight of the European Commission’s investigation.

The EBIT margin of the BMW car division fell to minus 1.6% from 9.7%. The division suffered a loss of €310 million against a profit of €1.88 billion a year earlier.

Sales of cars under the brands BMW, Mini and Rolls-Royce increased in January-March by 0.1% to 605,333 units against 604,629 units in the same period last year. At the same time, sales of Rolls-Royce increased by 49.4% to 1206 units.